JM Financial’s consolidated net profit increases 14.7% yoy to Rs180.76cr for Q3FY21; stock down 1.5%

The company’s total income during the third quarter of FY21 declined 1.60% yoy to Rs890.99cr.

Jan 25, 2021 10:01 IST India Infoline News Service

JM Financial Limited’s total income in the financial results for the December ended third quarter of FY21 declined 1.60% yoy to Rs890.99cr compared to Rs905.45cr in Q3FY20.

Profit before Tax (PBT) increased 8.56% to Rs330.76cr in Q3FY21 compared to Rs304.68 in Q3FY20. Net profit in Q3 increased 14.74% yoy to Rs180.76cr compared to Rs157.54cr.

The company on Saturday said that earnings per share for the nine months ended December 31, 2020, is Rs4.48cr. The consolidated net worth as at December 31, 2020, stands at Rs6,750cr and the gross debt-equity (equity of Rs6,750cr + non-controlling interest of Rs2,564cr) ratio is 1.11 times and net debt equity of 0.72 times (post reducing cash and cash equivalents of Rs3,716cr.

The book value per share is Rs70.88. Our total loan book stood at Rs10,407cr as of December 31, 2020 compared to Rs12,662cr as of December 31, 2019. Gross NPA and Net NPA stood at 1.79% and 1.16% respectively as of December 31, 2020 compared to 1.56% and 1.35% respectively as of December 31, 2019.

Proforma Gross NPA and Net NPA as of December 31, 2020 without considering effect of the interim order of Honourable Supreme Court of not classifying loans as NPA after August 31, 2020 would have been 3.57% and 2.04% respectively. We have made additional gross provisions of Rs185cr on account of the uncertainties around Covid-19 for the nine months ended December 31, 2020, thereby taking the total provisions to Rs360cr on account of the pandemic.

During the quarter, we offered resolution plan to its customers pursuant to the RBI resolution framework for Covid-19 related stress dated August 6, 2020. The aggregate loan book of these accounts stood at Rs62cr (0.59% of loan book as of December 31, 2020)

“The economy has rebounded quite strongly from the pandemic as compared to the first two quarters of this financial year. The economy is showing strong signs of recovery, albeit some part of the recovery can be attributed to pent-up demand. It will be very interesting to watch this trend of recovery in the current and next few quarters.

In our IWS businesses, we have a very strong pipeline of investment banking transactions. We are witnessing strong traction in the institutional and non-institutional equities businesses. The equity AUA for our private wealth management business has seen robust growth. The elite wealth management and the institutional fixed income businesses are scaling up. The internal synergies amongst the various businesses are yielding strong results. We believe the IWS business is well positioned to capitalize on the multi-decade opportunity in financial markets,” Vishal Kampani, Managing Director, JM Financial Group, said.

Ata round 10.05 am, JM Financial Ltd was trading at Rs84.70 per piece down Rs1.25 or 1.45% on the BSE.

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